People hurt in a crash involving an Uber or Lyft should focus on healing before anything else. But once they feel better, more problems come pouring in. Now they need to worry about the piling medical bills, projected cost of any therapy needed in the future plus the looming financial responsibilities caused by their loss of income.
Ride-sharing companies have their own insurance policies, but the coverage amount changes depending on what the driver was doing at the time of the accident. In New Jersey, these differences matter when you file a claim.
How does Uber and Lyft insurance work?
Uber and Lyft typically divide coverage into three phases: when the app is off, when it is on but the driver has no passenger and when the driver is on the way to or carrying a passenger. The amount of insurance depends on those stages. Here is how coverage applies:
- App off: Only the driver’s personal auto insurance will apply.
- App on but with no passenger: Uber and Lyft each provide limited liability coverage. In general, it goes up to $50,000 per victim, $100,000 for injuries (per accident) and $25,000 for damage to property.
- Passenger accepted or during a trip: Coverage can go up to a maximum of $1 million to cover injuries or damage caused by the driver, plus extra protection if the other driver has no insurance or does not have enough of it. It can also include coverage for the ride-share driver’s car if it gets damaged.
If you were a passenger or another motorist struck by a ride-share driver, knowing which phase the driver was in helps you determine which insurer is responsible.
Protect your rights after a ride-share crash
Some insurance adjusters call too soon after an accident, sometimes before you even know the full extent of your injuries. Do not settle right away. In New Jersey, ride-share injury claims can involve multiple insurers and overlapping policies, so speak with a lawyer to handle the technicalities while you focus on recovery.
In the meantime, get every driver’s insurance details, take photos of the scene and seek medical care ASAP. Have your attorney review your coverage options and protect your right to compensation. Uber or Lyft’s insurance policies have so many layers, so navigate the situation with your legal counsel. This way, you do not end up paying for someone else’s mistake.